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Interest-Free Seed Fund under Bihar Startup Policy

Bihar Startup Policy aims to support startups by seed funding as well as matching grants to increase their viability. The state government of Bihar provides entrepreneurs with interest-free seed money of Rs 10 lakh for a term of 10 years as part of its startup policy.

Validation Stage:

  • The Bihar Startup Policy 2022 provides young entrepreneurs with a startup fund of Rs. 10 lakh that is interest-free for 10 years.
  • For women entrepreneurs, the incentives are 5% enhanced. This means they will get Rs 10.5 lakh instead of Rs 10 lakh.
  • For SC/ST and differently-abled startup founders, the incentive will be 15% they will receive Rs 11.50 lakh.
  • 22% of the total corpus for funding start-ups shall be reserved for SC/ST beneficiaries.

Commercialization Stage:

Early Stage Funding Support

  • Free of cost Valuation for Start-ups.
  • Facilitate access to Angel Investors.
  • A success fee @2% of investment shall be provided to start-ups for mobilizing investments from state registered angel investors towards early stage funding.
  • If any startups joins in an accelerator program, it will also get Rs. 3 Lakh for product development and training.

Scale-up Funding Support

  • The SMIC may participate in SEBI registered AIFs (Alternate Investment Funds) and Venture Capital Funds. The Venture Capital Fund so created shall invest at least 50% (i.e. equal to twice the contribution made by trust in the VC Fund) in start-ups located in Bihar.
  • SMIC shall facilitate listing and public issue of Start-ups in collaboration with National Level Stock Exchanges such as BSE/ NSE.

Zero Cost for filing patents – Domestic and Foreign:

  • To encourage the registration of IPRs (Intellectual Property Right) by Start-ups and provide facilitation support for protection and commercialization of IPRs, Government.
  • Bear all costs associated towards filing domestic patents.
  • Provide additional financial assistance in form of reimbursement for awarded foreign patents towards filing fees.

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Note: This Post was last updated on December 4, 2023

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